Managers Do Not Beat the Market
Journal of Indexes
“Even if an investor can find a manager who outperforms for a full year, the probability that the manager will repeat the performance a second year running is between 50 and 62 percent. It is a mathematical certainty that the average manager will underperform the market by his fees.
Journal of Indexes “Where next for the Index Business Model? Bringing low cost to the world of active management.” By Thomas Leake and David Morris Pg. 23 May/June 2006
Wall Street Journal
“Santa Claus and the Easter Bunny should take a few pointers from the mutual-fund industry [and its fund managers]. All three are trying to pull off elaborate hoaxes. But while Santa and the bunny suffer the derision of eight year olds everywhere, actively-managed stock funds still have an ardent following among otherwise clear-thinking adults. Reams of statistics prove that most of the fundy industry’s stock pickers fail to beat the market. For instance, over the 10 years through 2001, U.S. stock funds returned 12.4% a year vs. 12.9% for the Standard and Poor’s 500 stock index.”
Wall Street Journal “Only Fools Fall In…Managed Funds?” By Jonathan Clements September 15, 2002
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